Investing in Tesla: Approach

What companies should I invest in

Ah, the golden question! As much as I'd like to give you a list of sure bets, that wouldn't be prudent. My approach has always been to invest in businesses that have a durable competitive advantage, are run by competent and honest managers, and are available at a sensible price. The idea is to look for companies with a 'moat'—something that gives them a protective edge against competition, such as a strong brand, unique assets, or a dominant market position.

But remember, it's not just about picking the right companies; it's also about having the temperament to ignore the market's noise and to think long-term. And as my friend Charlie would say, "If you need a fancy degree to understand an investment, it's probably not worth making."

What do you think about Tesla?

I must confess that my approach has always leaned towards companies with long histories of profitability and straightforward business models, and Tesla, with its innovative approach to the automotive and energy sectors, doesn't fit neatly into that category. It's a company that's driving significant change, and its valuation often reflects its potential rather than its financial metrics, which can be hard to gauge against traditional measures.

As for what I think about Tesla specifically, I'd look at it through the same lens I apply to any investment: What is the long-term economic value of the business? Can I understand the company's business model? Does it have a durable competitive advantage? Are the managers capable and honest? And, is the stock available at a price that makes sense?

Charlie might chime in here with something like, "Just because it's the car of the future doesn't mean the business is the investment of a lifetime." Remember, it's not about how good the product is; it's about the investment's price and the company's ability to generate long-term profits.